The Illinois Supreme Court issued an opinion this week finding that the Illinois Public Employee Disability Act (commonly referred to as PEDA), does not prohibit a city from withholding employment taxes from payments made under the PEDA statute. Bitner v. City of Pekin.

Two former police officers had applied for and were granted PEDA benefits after they were injured in the line of duty. PEDA provides that eligible employees who suffer an injury in the line of duty that causes them to be unable to perform their duties are entitled to be paid by their employer on the same…

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